How to ensure a healthy payroll in 2020: 

  • Double-check Social Security numbers
  • Be aware of employee codes
  • Stay on top of company taxes
  • Keep a clean payroll
  • Use data validation reports

What do these things have in common? DATA.

Everyone’s setting New Year’s resolutions to stay healthy — but while you’re making promises to take the stairs and eat less sugar, think about applying that drive for wellness to your payroll data. I guarantee you’ll see results!

5 Tips for Healthy Payroll in 2020

Kronos Payroll Services (KPS) is here to support you on your wellness journey. Remember the five tips listed above and continue reading for a more detailed description of how they’ll help you maintain healthy payroll data in your system — ultimately contributing to a smoother 2020 and making year-end easier.

 

Double-check Social Security numbers 

It’s always worth slowing down to enter employee data carefully. Social Security numbers (SSNs) are the perfect example. Incorrect SSNs will create issues with employee W2s and when filing tax returns and payments. You must enter the correct SSNs while adding new employees and verify that the numbers are properly formatted to match Social Security Administration (SSA) standards. 

Key facts per the SSA:

  1. SSNs cannot begin with the following: 000, 666, or 9
  2. SSNs cannot be among the following: 123-45-6789, 111-11-1111
  3. SSNs cannot have double zeroes for digits four and five, or end in four zeroes

Be aware of employee codes 

It’s also important to confirm that your employees are coded correctly. Consider the following code selection examples:

  • W2 employee versus 1099 contractor: Review the Employee Tax Type for your employee to ensure it is correct. 
  • Taxable or block withholding (W/H) or exempt: Incorrect tax coding on an employee can cause discrepancies with wages and taxes for your company and for your employee. 

Stay on top of company taxes 

I can’t stress this enough. Company taxes directly impact successful tax and payment filing. KPS clients must make all changes to a company tax through Kronos. We can work with you to confirm the settings are accurate. Here are a couple of things to look out for:

  • Unemployment rates: Every new year brings new unemployment rate updates. Send rate notices to Kronos as soon as possible, and we’ll help you change the rate within your account. You can either contact your implementation team or open a case with Kronos Global Support in Kronos Community depending on where you are on your Kronos journey.
  • “Applied For” status: Accounts should never remain in the “Applied For” status. Tax accounts with this status are at risk when filing taxes. Always obtain the proper identification number from the taxing agency quickly!

Keep a clean payroll

KPS recommends that you keep your payroll process screen clean. If you have determined that a scheduled or added payroll is not needed, the best practice is to delete it from your payroll process screen. 

All unused payrolls must be deleted for you to close out and sign off each quarter. By keeping track of this on a regular basis, you’ll reduce the cleanup needed at a quarter close — and ultimately at year-end. 

Use data validation reports 

Data validation reports help keep the health of your account in the GREEN. You can run monthly audit reports to confirm balance and ensure no payroll issues have occurred. 

Data validation reports are preloaded to your account. Access them by navigating to Team > Payroll > Forms > W2s > then click Saved: {System} for a full listing of reports. The reports will show you any known discrepancies for each type of data validation. 

If you ever find a discrepancy with your account that requires corrections, please reach out to Kronos for assistance. We’re happy to help. We would rather be proactive and walk you through the correction than risk additional issues happening in the future. 

The KPS team provides tools to assist you with running data validation reports within your solution. You’ll want to note these! 

 

Train to stay healthy

Training is the best way to stay healthy in the long term. If you’re a KPS customer, exercise your payroll skills with a few more payroll resources.  

    KPS quarterly trainings

    Training is scheduled twice per quarter. Once scheduled, the information can be found in two locations:

    1. Posted within the system via Pop-Up Communicator 
    2. Posted within the KPS Community Group

    KPS new admin training delivered monthly    

    Overview of KPS for new system administrators

    For more on KPS, visit our resource center in Kronos Community, download the KPS fact sheet with wage and tax details for 2020, and join the Kronos Payroll Services group if you haven’t already. 

    Visit the Kronos Payroll Services Group

    Published: Tuesday, January 14, 2020